On January 1, 2008, Chua admitted that he was the person featured in a sensational sex DVD that was widely being circulated in Johor. The two DVDs were distributed anonymously in Muar and other towns in Johor show Dr Chua having sex with a young woman, allegedly one of his personal friends. The DVDs are believed to be wireless hidden camera recordings in a hotel suite.[5]

He claimed no involvement in the filming or production of the DVD in question, further stating that he would not resign over the scandal, instead leaving it up to Prime Minister Abdullah Ahmad Badawi to decide whether to allow him to continue holding his position.[6] On January 2, 2008, he formally announced his resignation from all posts including Member of Parliament for Labis, Vice Presidency of the MCA, and as Health Minister at a press conference.[7]